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In this post please find links to the entire OTT & Multiscreen Digital Video Series. If you click on the thumbnail, then it will open the PDF article (for subsequent download). If you click on the link below the thumbnail it will be redirect you to the original web article.

I. Consumption is Personal

Broadcast providers had a relatively difficult task in understanding their audience, in the days of linear television. In the absence of the internet, adjusting to subscriber behavior was slow, in comparison to the real-time nature of internet video. Today online video providers have the ability to experience a one-to-one conversation with their audience. Viewing habits of consumers will continue to rapidly change in the next ten years. This will require accompanying changes in advertising expenditure. In the global nature of internet video, these online services will need to optimize accordingly to capitalize on these market opportunities.

II. Granularity of Choice

The evolution from traditional TV viewing to online video has been swift. This has significantly disrupted disc sales such as DVD and Blu-Ray, as well as cable and satellite TV subscriptions. With the newfound ability to consume content anytime, anywhere, and on any device, consumers are re-evaluating their spending patterns. In this paper we will discuss these changes in buying behavior, and identify the turning-point when all this started to accelerate.

III. Benchmarking the H.265 Video Experience

Transcoding large video libraries are a time consuming and expensive process. Maintaining consistency in video quality helps to ensure that storage costs and bandwidth is used efficiently. It is also important for video administrators to understand the types of devices receiving the video, so that subscribers are getting the most optimal viewing experience. This paper discusses the differences in quality in popular video codecs, including the recently ratified H.265 specification.

IV. Search & Discovery Is a Journey, not a Destination

Television subscribers have come a long way from the days of channel hopping. The arduous days of struggling to find something useful to watch is now securely behind us. As consumers look to the future, the ability to search for related interests and discover new interests is now established as common practice. This paper discusses the challenges that search and discovery engines face in refining their services, in order to serve a truly global audience.

V. Multiscreen Solutions for the Digital Generation

Broadcast, as a whole, is becoming less about big powerful hardware and more about software and services. As these players move to online video services, subscribers will benefit from the breadth of content they will provide to subscribers. As the world’s video content moves online, solution providers will contribute to the success of internet video deployments. Support for future technologies such as 4K video, advancements in behavioral analytics, and the accompanying processing and networking demands will follow. Migration to a multiscreen world requires thought leadership and forward-thinking partnerships, to help clients keep pace with the rapid march of technology. This paper explores the challenges that solution providers will face in assisting curators of content to address their subscriber’s needs and changing market demands.

VI. Building a Case for 4K, Ultra High Definition Video

Ultra High Definition technology (UHD), or 4K is the latest focus in the ecosystem of video consumption. For most consumers this technology is considered far from consumer reach, if at all necessary. In fact, 4K is right around the corner, and will creep into the mind-share of consumer wish-lists by the end of this decade. From movies filmed in 4K, to archive titles scanned in UHD, there is a library of content just waiting to be released. Furthermore, today’s infrastructure is converging to meet the demands of 4K, including internet bandwidth speeds, processing power, connectivity standards, and screen resolutions. This paper explores the next generation in video consumption and how 4K will stimulate the entertainment industry.

VII. Are You Ready For Social TV?

Social TV brings viewers to content via effective brand management and social networking. Users recommend content as they consume it – Consumers actively follow what others are watching – Trends drive viewers to subject matters of related interests. Integration of Facebook, Twitter, Tumblr and other social networks become a natural part of the program creation and engagement of the viewing community. Social networks create an environment where broadcasters have unlimited power to work with niche groups without geographic limits. The only limitations are those dictated by content owners and their associated content rights, and corporate culture preventing broadcasters from evolving to a New Media world.

VIII.-X. Turning Piratez into Consumers, I, II, III, IV, & V

Content Protection is a risk-to-cost balance. At the moment, the cost or piracy is low, the risk is low, and the enforcement is not ubiquitous. There is no silver bullet to solving piracy, but steps can be taken to reduce their levels to something more acceptable. It is untrue that everyone who pirated would refuse to buy a product legally. It is equally untrue that every pirated copy represented a lost sale at full download price. If the risk is too high, and the cost is low enough, then less people would pirate content. This paper explores how piracy has evolved over the past few decades, and discusses the issues around copyright infringement in the entertainment industry, and proposed steps to convert Piratez into consumers.

Broadcast for the Digital Generation

The multiscreen experience has significantly widened the choice for how subscribers receive their content. The living room television is no longer the only lean-back experience – tablets and mobiles also offer a unique approach to viewing content. Internet video introduced the notion that self-produced short-form videos[1] (less than 10 minutes), are not just a fad but an alternate form of entertainment[2]. Whether short-form or long-form, it is no longer necessary to buy video in excess of what is consumed – subscribers now have the ability to obtain exactly what they want, thanks in part to multiscreen viewing.

In the foreseeable future online video is expected to dominate the daily consumption of content. But the predictions of a broadcast demise due to multiscreen, have been exaggerated. Consumers are increasing their viewing experience with alternate online offerings such as YouTube[3], Netflix[4], and Hulu[5]. In spite of recent studies, habits have not changed significantly from traditional TV viewing[6]. A recent study by Ericsson (Figure ii) shows that consumers are migrating from a passive viewer to an active user state, where new services are being offered on demand, onto multiple screens[7]. In any case, as indicated by this study, although there is a steady shift towards internet video, linear television[8] still maintains a key position in the viewing habits of subscribers.

Figure ii – Average Viewing per Device across 12 Markets

Furthermore, the television industry is forecasted to maintain healthy growth amid a rapid rise in competing online video solutions. One metric for measuring the broadcast business is in the analysis of advertising[9] revenue. As shown in Figure iv, ads for local television stations experienced a dip from 2006 to 2009, however there has been a steady rise since. Even if growth is in single digits, it is growth nonetheless. Traditional television revenue growth continues to show a stable and upward trend[13].

Figure iii – Time Spent Viewing per day, by Type[20]

Nevertheless, some media still portray the state of linear broadcast (aka. live television)[11] as steadily dying, in contrast to the growth in online video. Some even predict the demise of television to echo the fate of newspapers[12]. Just google, “death of broadcast television” to see the latest dire opinions of journalists. The origin of TV’s demise are rooted in recent subscriber trend reports. For example, Alcatel Lucent Bell Labs[28] predicts that by 2020, only 10% of viewing in the U.S. will be via linear TV, compared to 48% in 2012. Almost 50% of video will be consumed using OTT (Over-the-top content)[29] by the end of this decade, and another 33% will be using VoD services. Additionally, daily viewing is expected to increase from 4.8 hours per day in 2012 to seven hours per day in the next eight years. This change will be driven by a twelve fold increase in internet video content, according to the study.

Figure iv – Television Station Advertising Revenue Forecast

Broadcasters continue to be the Ocean Liners of this market[14] – not just because they are huge and have the most money to spend, but because they know their viewers well and are still the flagships of video monetization. Ultimately, broadcasters are in an excellent position to capitalize on the current evolution of subscriber behavior. However, as with most new technologies there are big boats, well-funded, directed with huge capacity. Then there are smaller faster and flexible boats, able to quickly address what the big guys have missed (or maybe even fast enough to grab some clients before the bigger boats hit port). Compared to the traditional broadcast industry – which is over 60 years old – online video has only recently entered into the mind-share of consumers[15]. With so many suppliers[16] vying for market share one could infer that this suggests a young market that promises growth and eventually consolidation[17].with the ocean liners steadily incorporating and mimicking the activities of the smaller, faster players.

For these ocean liners to survive in a multiscreen world, consolidation will occur, and take shape in many forms. One may be Telco providers acquiring video platforms to complement their service portfolio. After all, Telcos and content delivery network (CDN[18]) operators are responsible for supplying video traffic reliability to their subscribers. Their services are easily complemented by offering cloud-based video to host all of that content. A recent example of this is the acquisition of Delve by the CDN provider Limelight[19]. Another example are design and build video solution providers that will continue to seek partnerships to widen their geographic reach – resulting in cross-sell[21] and up-sell[22] opportunities.

In addition, equipment manufacturers offering partial solutions to an OVP (Online Video Platform[23]) infrastructure will acquire suppliers to complete their product offering. Still other companies may acquire for the purposes of building Intellectual Property[24] assets to increase their opportunity footprint.

This multiscreen ocean is certainly big enough to accommodate boats of all sizes and shapes.

Analog Dollars to Digital Gold

The economic climate over the past few years has been a wake-up call for broadcasters[25] looking to streamline their workflow and cut costs. This has helped drive a migration to digitization and then logically extend their libraries to internet video services. This can significantly lower costs compared to expensive hardware-based broadcast equipment, and becomes a necessary foundation for multiscreen video consumption.

So, despite budget cutbacks in ICT[26], consumer demand has helped push the migration of investments to online video, and build these new infrastructures. Throughout the latest economic down-turn, the need for multiscreen solution providers remains strong. This is largely due to the requirement of migrating legacy-based tape systems to an internet-based file system. All of these changes require expertise in both traditional and new disciplines. As common sense dictates; the better a supplier speaks the language of the client, the higher the chances of a successful installation. It follows that suppliers with a background in both traditional video and new media[27] video will prove to be the most successful players.

The recent recession has not affected all regions equally. Emerging, dynamic markets such as Central & Eastern Europe, Africa, the Middle East and South-East Asia have been a blessing to solution providers operating internationally. Although budgets are typically smaller in these emerging markets, the sheer quantity of projects is a boon to suppliers trying to maintain healthy revenue streams. In some cases these new technology investments allow these markets to leap-frog western counterparts.

So how will the traditional broadcast industry adapt and overcome these rapid changes in subscriber behavior? Well, it certainly won’t happen overnight. But speed, agility and sheer will are necessary to survive and thrive amid evolutionary changes. The digital video world is no exception. Curators of content – those who produce, own, or distribute video – are perfectly positioned to capitalize on this massive market growth – Both in the use of multiple screens, and in the increased duration that subscribers are watching video.

Building the Foundation

A main component of revenue success in multiscreen services is to offer solutions that are flexible, modular, and scalable. This forms the critical paths to building modern platforms that can accommodate a plethora of back-end infrastructures, while maintaining a sense of continuity. The project needs to be considered as an ever-evolvingsolution, as opposed to a one-off product. A well maintained and updated platform will translate into happy subscribers, and provide a foundation for geographic reach.

Search & Discovery – These algorithms need to juggle a complex set of search results that offer accurate suggestions in real-time. Search results should be correlated across collaborative, statistical, social, and behavioral engines.

Development Portability – ensuring that multiscreen software development can be usable on as many devices and operating systems, as possible.

DRM[30] Interoperability – Support for multiple DRM standards that seamlessly cohabitate. At the top of this content protection pyramid is PlayReady[31] from Microsoft, FairPlay[32] from Apple, Verimatrix and more recently, UltraViolet[33] which is backed by a consortium of over 70 corporations. Future online video services should anticipate support for heterogeneous DRM environments.

Automated end-to-end Workflow – Ensuring that tasks from live broadcasts or VoD (Video On Demand)[34] to multiscreen playout are streamlined, and converge on real-time service delivery.

Multiscreen Development Excellence – Maintaining a high quality and consistent video experience across as many consumer devices as possible.

Internet video solutions should be capable of integrating into existing hardware and broadcast workflows without overly taxing the corporate culture. For broadcasters, the ability to tie seamlessly into established operational processes is a strong value-add, and in some cases essential. A robust offering also needs to accommodate new-entrants into the video delivery market that do not have any legacy constraints.

Proposals that realize these goals start from the framework of understanding the client’s overall business objectives and then take a strategic approach with the client, rather than reacting to a single tactical request,. Much larger business opportunities are uncovered and a competent supplier’s profile is raised from a basic reseller to a trusted adviser.

Preparing a solution begins with understanding the client’s pains and/or needs. This may be in the form of organizational inefficiency, competitive threats, or not capitalizing on new revenue potential. A strategy can then be developed to address these business challenges. Strategic decisions filter down to departmental objectives and into individual actions. Solution selling leads to the building block of People, Process, and Technology, whereby:

Technological components consist of a bill-of-materials, including various software and hardware that may spread across an eco-system of suppliers.

From People disseminates knowledge and expertise and forms the basis of a provider’s reputation

The overall Proposal consists of designing, building and supporting the solution.

In combination, these components fulfill the client’s strategic vision as the project migrates to the implementation stage. Still, the project should not be considered a one-off implementation, but rather an organic infrastructure, synchronized with revenue growth and client expectations.

Software, Platforms, & Infrastructure

An important solution for delivering multiscreen internet video is utilizing a PaaS[35] (Platform as a Service) and SaaS[36] (Software as a Service) offering. These cloud-based services provide content owners and distributors with a quick time-to-market. Comparatively, designing and building a proprietary online video platform takes several years, and may still not match the functionality, resilience, and longevity of a commercial grade platform. In a digital video context, the difference between SaaS and PaaS is that SaaS is mainly positioned as an entry-level service, for companies with a limited amount of premium content. This is where most OVP vendors concentrate their efforts. A SaaS-based service manages video content in the cloud, and the client uses a portal interface to manage their subscribers. This is often an off-the-shelf service, with minimal flexibility in workflow, accommodating legacy systems, or support for live content.

Figure vii – Online Video Market Opportunities

Conversely, PaaS is a complete platform solution approach. The cloud infrastructure is fully customizable in both hardware and software to suit the needs of the client. These solutions encompass a much larger infrastructure, defined in this case as OTT (Over the Top Content). OTT solutions are best delivered as an à la carte[38] service, giving clients the flexibility to run a more robust service, while not having the burden of hosting (and managing the entire infrastructure by themselves which entail higher capital and operating costs respectively).

Where OVP may service terabytes of storage, OTT services petabytes and exabytes of content.

Online Video Must Flow

Content management for multiscreen has special requirements in the cloud. Compared to services that just involve document storage (i.e. without video, or other real-time multimedia), the keys to a successful video service are: the ability to manage large bandwidth requirements, quality of service demands, and massive storage. Beyond these basics, there are distinct requirements for content protection, licensing, and monetization of assets. There is also a clear demarcation between managing VoD verses live content; VoD subscribers download stored files; Live content requires special real-time workflow considerations from ingest & transcoding, through to delivery & consumption.

Opportunities have not just come from traditional broadcasters. They come from new entrants as well – Companies that have no legacy issues, and want to build digital infrastructures and distribution models using the latest methodologies. Media brands, retailers, telcos and enterprises are all realizing that they have vast libraries of multimedia content that can be monetized given an affordable, easy to use and flexible platform (Figure vii). This brings awareness to traditional enterprises that an online video platform can be an excellent vehicle to promote their brand, and enhance their revenue streams.

With a proper architecture across all five stages – Creation, Ingestion, Management, Delivery, and Consumption (Figure vi) – Video service providers are able to monetize all of their content – not just what they feed into a live channel.

OTT, OVP, represent tremendous revenue opportunities for network operators, media creators, owners and distributors of video content and, of course for enterprises in general. Wherever the client comes from, and however much video content they have, it can be consumed and monetized using OVP and OTT solutions using a PaaS or SaaS architecture.

Read Additional Articles in this Series

I. Consumption is Personal

In the days of linear television, broadcasters had a difficult task in understanding their audience. Without a direct broadcasting and feedback mechanism like the Internet, gauging subscriber behavior was slow. Today, online video providers have the ability to conduct a one-to-one conversation with their audience. Viewing habits of consumers will continue to rapidly change in the next ten years. This will require changes in advertising expenditure and tactics.

II. Granularity of Choice

The evolution from traditional TV viewing to online video has been swift. This has significantly disrupted disc sales such as DVD and Blu-Ray, as well as cable and satellite TV subscriptions. With the newfound ability to consume content anytime, anywhere, and on any device, consumers are re-evaluating their spending habits. In this paper we will discuss these changes in buying behavior, and identify the turning point of these changes.

III. Benchmarking the H.265 Video Experience

Transcoding large video libraries is a time consuming and expensive process. Maintaining consistency in video quality helps to ensure that storage costs and bandwidth are used efficiently. It is also important for video administrators to understand the types of devices receiving the video so that subscribers can enjoy an optimal viewing experience. This paper discusses the differences in quality in popular video codecs, including the recently ratified H.265 specification.

IV. Search & Discovery Is a Journey, not a Destination

Television subscribers have come a long way from the days of channel hopping. The arduous days of struggling to find something entertaining to watch are now behind us. As consumers look to the future, the ability to search for related interests and discover new interests is now established as common practice. This paper discusses the challenges that search and discovery engines face in refining their services in order to serve a truly global audience.

V. Multiscreen Solutions for the Digital Generation

Broadcasting, as a whole, is becoming less about big powerful hardware and more about software and services. As these players move to online video services, subscribers will benefit from the breadth of content they will provide to subscribers. As the world’s video content moves online, solution providers will contribute to the success of Internet video deployments. Support for future technologies such as 4K video, advancements in behavioral analytics, and accompanying processing and networking demands will follow. Migration to a multiscreen world requires thought leadership and forward-thinking partnerships to help clients keep pace with the rapid march of technology. This paper explores the challenges that solution providers will face in assisting curators of content to address their subscriber’s needs and changing market demands.

VI. Building a Case for 4K, Ultra High Definition Video

Ultra High Definition technology (UHD), or 4K, is the latest focus in the ecosystem of video consumption. For most consumers this advanced technology is considered out of their reach, if at all necessary. In actual fact, 4K is right around the corner and will be on consumer wish lists by the end of this decade. From movies filmed in 4K, to archive titles scanned in UHD, there is a tremendous library of content waiting to be released. Furthermore, today’s infrastructure is evolving and converging to meet the demands of 4K, including Internet bandwidth speeds, processing power, connectivity standards, and screen resolutions. This paper explores the next generation in video consumption and how 4K will stimulate the entertainment industry.

VII. Are You Ready For Social TV?

Social TV brings viewers to content via effective brand management and social networking. Users recommend content as they consume it, consumers actively follow what others are watching, and trends drive viewers to subject matters of related interests. The integration of Facebook, Twitter, Tumblr and other social networks has become a natural part of program creation and the engagement of the viewing community. Social networks create an environment where broadcasters have unlimited power to work with niche groups without geographic limits. The only limitations are those dictated by content owners and their associated content rights, as well as those entrenched in corporate culture who are preventing broadcasters from evolving into a New Media world.

XII. Turning Piratez into Consumers, V

Content Protection is a risk-to-cost balance. At the moment, the cost of piracy is low and the risk is low. There are no silver bullets to solving piracy, but steps can be taken to reduce levels to something more acceptable. It is untrue that everyone who pirates would be unwilling to buy the product legally. It is equally evident that every pirated copy does not represent a lost sale. If the risk is too high and the cost is set correctly, then fewer people will steal content. This paper explores how piracy has evolved over the past decades, and investigates issues surrounding copyright infringement in the entertainment industry.

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About the Author

Gabriel Dusil was recently the Chief Marketing & Corporate Strategy Officer at Visual Unity, with a mandate to advance the company’s portfolio into next generation solutions and expand the company’s global presence. Before joining Visual Unity, Gabriel was the VP of Sales & Marketing at Cognitive Security, and Director of Alliances at SecureWorks, responsible for partners in Europe, Middle East, and Africa (EMEA). Previously, Gabriel worked at VeriSign & Motorola in a combination of senior marketing & sales roles. Gabriel obtained a degree in Engineering Physics from McMaster University, in Canada and has advanced knowledge in Online Video Solutions, Cloud Computing, Security as a Service (SaaS), Identity & Access Management (IAM), and Managed Security Services (MSS).

Synopsis

The era of multiscreen video has begun. Portability and connectivity are changing the video landscape. TV everywhere and other multiscreen initiatives are fundamentally changing the entertainment business model, with apps streaming live to TVs, computers, tablets, and mobile phones. According to the latest forecasts from Informa, the global online-video market will be worth $37 billion in 2017, driven by the popularity of OTT (Over the Top services). Broadcasters, content owners, and distributors must engage multiscreen delivery to survive. This presentation explores these market trends, and integrated solutions that bridge the gap between the broadcast world and multiscreen consumption.

Synopsis

Various industry players are working feverishly to engage customers through online video so that content is available anywhere, anytime, and on any device. Migration to multiscreen video consumption requires thought leadership and forward-thinking partnerships, to help clients keep pace with the rapid march of technology. vuEasy™ is a new solution that opens doors to a wide range of companies waiting for an ideal Cloud-based service to monetize their past, present and future content. Monetization is not just about selling content – it is about building business awareness and a communication strategy around a brand. With vuEasy™, Visual Unity enables an eMarketplace so that businesses can converge in a single cloud service and convert their multimedia assets into revenue.

In the days when there were only a handful of channels, the ratio between useful and useless didn’t seem to matter – Especially when it was free and over the air (OTA[1]) content. But as Pay TV[2] came to market in the 90’s, consumers were presented with hundreds of channels and monthly fees. The gap between relevant and irrelevant widened significantly. Throughout this transition subscribers became used to the notion that, “buying the entire book store”, was necessary just to get a few books. It was a necessary evil for users to purchase more than they actually wanted to consume. There was no other way to get access to the handful of channels that we really wanted to watch.

But in today’s internet world, consumers no longer need to buy the entire bookstore to get a few books. Consuming content is analogous to going to the library and only borrowing (i.e. viewing) what we want – then giving it back when we’re done. Accessibility to online content has removed the need to subscribe to more than we need to consume. Whether it’s head-end or long-tail[3] content, consumers only need to purchase and consume what they want, without any excess baggage and expense.

Figure i – The Long Tail of Internet Video Consumption

The frustration of having too many channels didn’t matter, as long as we could watch what we wanted. But the challenge for broadcasters was introducing their subscribers to mid-tail to long-tail content otherwise unnoticed by the casual viewer. Cable and satellite providers addressed these market challenges through the introduction of EPG (electronic programming guides), and DVR (digital video recorders or PVR, personal video recorders[4]). With these new set-top boxes (STB[5]), subscribers became untethered from the limitations of linear broadcast. Finally consumers could watch their programming whenever they wanted, the freedom to pause or rewind if they wanted…or, dare we mention – fast-forward through commercials – to the irritation of advertisers. Nevertheless, there was still a string tying the subscriber to linear TV since the digital video recorder needed to wait for the program to broadcast before it could be captured onto a set top box. A limitation that will always apply to live broadcast for that matter.

With Over the Top content (OTT)[7], services such as Netflix[8] and Hulu[9], subscribers could finally disconnect themselves completely from linear television, and just download what they wanted (i.e. any content), when they wanted (i.e. any time). With Apple’s introduction of the iPhone in 2007[10] and iPad in 2010[11], consumers became untethered from their living rooms and could watch videos on any device and ‘anywhere’.

With the growth of online video, a trend has also begun with subscriber’s cutting-the-cord[13]. This is a fairly recent phenomenon where consumers cancel their cable or satellite TV contracts, and exclusively use the internet for their viewing experience. This may include a combination of OTT services, cloud-based subscription services, or any number of websites which serve internet video. The accompanying chart shows that around 7% of global Pay TV subscribers have cut the cord, with another 8% proactively reducing their costs. From this group, 56% that made the change were motivated by saving money, and another 42% weren’t watching enough television to justify the subscription cost. Overall this decline may not seem alarming, but for cable and satellite providers with millions of subscriber, this amounts to sizable losses in annuity revenue streams. In the U.S. alone, over a two year period from the beginning of 2010 till the end of 2011, the cable TV industry lost 2.3 million subscribers[14], and this downward trend is continuing unabated. With an ARPU[15] (Average Revenue Per User) of $53 US per month[16], this amounts to a loss of over $1.4 billion US per year. This decline doesn’t appear to be slowing any time soon.

In a world where Netflix offers an extensive movie library and Hulu offers the same for TV serials, then what is left for broadcaster’s to differentiate their offering? Currently this includes live sports and news events. These may be the traditional broadcaster’s last remaining holy grail – but for how long? Protecting their revenue streams has created a sense of urgency, more so than embracing new online revenue opportunities. It’s no mistake that most of the 2012 Olympics in London were only available via selected broadcasters world-wide[17].

Figure iii – Decline in U.S. Cable TV Subscribers

The Internet has significantly disrupted the traditional TV subscription model. Even if consumers still watch their television for live news and sports, for some it has become a medium for background noise within the confines of their living room. It’s a relaxing release from having to make a choice of what to watch. For others the autonomy to make content choices has widened, and the ability to granularity access that content also has.

The need to own content is also being diluted by accessibility. As service providers continue to consolidate libraries, extended their content rights, and provide multiple ways to consume content, the need for ownership is slipping from the minds of consumers. This may be partially the reason behind the dip in disc sales over the past few years. According to Rentrak[18] and DEG[19], the decline in Blu-Ray and DVD disc sales is currently around 16% per year. Despite the growth in Blu-Ray disc revenue, this hasn’t offset the decline in DVD sales[20].

According to Rentrak, video sales continued to steadily rise until 2005, fueled in part through a combination of rental and sell-through revenue. The turning point of the video industry appears to be around 2006. This was the year when Blu-Ray was introduced. Around this time Internet speeds had finally caught up to the ability to deliver video in real time. Albeit, first in standard definition (SD). In the middle of the decade video streaming technologies such as Real Time Streaming Protocol (RTSP)[22] took hold. 2006 was also the year when Google[27] purchased YouTube for 1.65 billion US$ – less than 18 months after it was founded. On the 29th of June 2007 Apple begins shipping the first iPhone[25], which was instrumental in fueling the popularity of mobile video. Steve Jobs[26] certainly recognized that he could create unique products that where a culmination of multiple technological innovations. Another critical milestone was the launch of FairPlay[28] DRM (Digital Rights Management) by Apple, and PlayReady[29] DRM from Microsoft in February 2007. This brought some comfort to movie studios that their titles will be secured when distributed online. During this time, the defining changes in consumer behaviour could be attributed to both an improvement in video quality, the introduction of 1080p televisions, and the growth of OTT services bringing low-cost or no cost video to the end-user.

Figure iv – Consumer Entertainment Spending in U.S. Homes

The need for ownership is now outweighed by our ability to easily access online content. For instance, YouTube[33] is already seen as the most popular method of watching and listening to music videos[34]. Why purchase a CD when a high quality audio and video track of the artist is readily accessible online? And it’s free! This has caused Generation X consumers to sit back and wonder how they managed to spend thousands of dollars in building massive disc collections. Especially when, in the case of a DVD – the movie is only watched once. The same applies to music CD’s that been played a handful of times. The concept of physical disc ownership is beginning to be an archaic concept. CD, DVD, and Blu-Ray sales will continue to struggle amongst the rapid rise of internet-based video and music distribution[35].

Even though VoD (Video On Demand)[30], has slightly offset the decline in entertainment sales alone, overall the video disc rental industry is in a steady 2% decline per year. It has yet to be determined whether the global accessibility of legitimate internet video services, the international expansion for content rights, and 4K UHD (Ultra High Definition)[31] will be able to reverse this trend. Certainly the revival of 3D[32] hasn’t managed to save the industry in these past few years. In the meantime, it appears that this downward trend won’t be recovering any time soon.

Figure v – 2006: The Turning Point for Digital Video

Furthermore, physical collections are made obsolete through the re-release of titles at better qualities. This cycle has been repeated as far back as the VHS transition to DVD, and again when DVD’s transitioned to Blu-Ray. The consumer frustration of replacing collections is apparent at every juncture. Blu-Ray disc may certainly be the final physical medium for content distribution[36] but does not eliminate this cycle from repeating itself when 4K content is released. The technological innovations in bandwidth, processing power, and screen resolutions are certainly enabling video to be delivered with pristine quality video via the internet, without the need for disc storage.

As a final note, it’s worth mentioning that the current high definition broadcasts are usually limited to 720p[38]. This is mainly due to preserving precious bandwidth, and also helps reduce transcoding time and storage costs in the back-end. 1080p[39] video double these resource requirements in all directions . High compression ratios also help to squeeze as much video as possible in today’s precious bandwidth. For the moment this ensures that Blu-Ray continues to maintain a significant lead at the high-end, maintaining stellar video quality at 1080p. In some cases Blu-Ray contains over ten times the video information of its downloadable or streaming counterpart. Blu-Ray’s bandwidth requirements of 25 to 50Mbps are simply not feasible for today’s average internet subscriber. So the lucrative 1080p market remains safely in the hands of Blu-Ray, for the time being.

Internet speeds are increasing, both for wireless and wireline, and online video providers are creeping into this market with their own 1080p offerings. By the time 4K disrupts the market within this decade, it is likely that technological innovation will converge to stream ultra-high resolutions in real-time – leading perhaps to the demise of disc sales.

Read Additional Articles in this Series

I. Consumption is Personal

In the days of linear television, broadcasters had a difficult task in understanding their audience. Without a direct broadcasting and feedback mechanism like the Internet, gauging subscriber behavior was slow. Today, online video providers have the ability to conduct a one-to-one conversation with their audience. Viewing habits of consumers will continue to rapidly change in the next ten years. This will require changes in advertising expenditure and tactics.

II. Granularity of Choice

The evolution from traditional TV viewing to online video has been swift. This has significantly disrupted disc sales such as DVD and Blu-Ray, as well as cable and satellite TV subscriptions. With the newfound ability to consume content anytime, anywhere, and on any device, consumers are re-evaluating their spending habits. In this paper we will discuss these changes in buying behavior, and identify the turning point of these changes.

III. Benchmarking the H.265 Video Experience

Transcoding large video libraries is a time consuming and expensive process. Maintaining consistency in video quality helps to ensure that storage costs and bandwidth are used efficiently. It is also important for video administrators to understand the types of devices receiving the video so that subscribers can enjoy an optimal viewing experience. This paper discusses the differences in quality in popular video codecs, including the recently ratified H.265 specification.

IV. Search & Discovery Is a Journey, not a Destination

Television subscribers have come a long way from the days of channel hopping. The arduous days of struggling to find something entertaining to watch are now behind us. As consumers look to the future, the ability to search for related interests and discover new interests is now established as common practice. This paper discusses the challenges that search and discovery engines face in refining their services in order to serve a truly global audience.

V. Multiscreen Solutions for the Digital Generation

Broadcasting, as a whole, is becoming less about big powerful hardware and more about software and services. As these players move to online video services, subscribers will benefit from the breadth of content they will provide to subscribers. As the world’s video content moves online, solution providers will contribute to the success of Internet video deployments. Support for future technologies such as 4K video, advancements in behavioral analytics, and accompanying processing and networking demands will follow. Migration to a multiscreen world requires thought leadership and forward-thinking partnerships to help clients keep pace with the rapid march of technology. This paper explores the challenges that solution providers will face in assisting curators of content to address their subscriber’s needs and changing market demands.

VI. Building a Case for 4K, Ultra High Definition Video

Ultra High Definition technology (UHD), or 4K, is the latest focus in the ecosystem of video consumption. For most consumers this advanced technology is considered out of their reach, if at all necessary. In actual fact, 4K is right around the corner and will be on consumer wish lists by the end of this decade. From movies filmed in 4K, to archive titles scanned in UHD, there is a tremendous library of content waiting to be released. Furthermore, today’s infrastructure is evolving and converging to meet the demands of 4K, including Internet bandwidth speeds, processing power, connectivity standards, and screen resolutions. This paper explores the next generation in video consumption and how 4K will stimulate the entertainment industry.

VII. Are You Ready For Social TV?

Social TV brings viewers to content via effective brand management and social networking. Users recommend content as they consume it, consumers actively follow what others are watching, and trends drive viewers to subject matters of related interests. The integration of Facebook, Twitter, Tumblr and other social networks has become a natural part of program creation and the engagement of the viewing community. Social networks create an environment where broadcasters have unlimited power to work with niche groups without geographic limits. The only limitations are those dictated by content owners and their associated content rights, as well as those entrenched in corporate culture who are preventing broadcasters from evolving into a New Media world.

XII. Turning Piratez into Consumers, V

Content Protection is a risk-to-cost balance. At the moment, the cost of piracy is low and the risk is low. There are no silver bullets to solving piracy, but steps can be taken to reduce levels to something more acceptable. It is untrue that everyone who pirates would be unwilling to buy the product legally. It is equally evident that every pirated copy does not represent a lost sale. If the risk is too high and the cost is set correctly, then fewer people will steal content. This paper explores how piracy has evolved over the past decades, and investigates issues surrounding copyright infringement in the entertainment industry.

About the Author

Gabriel Dusil was recently the Chief Marketing & Corporate Strategy Officer at Visual Unity, with a mandate to advance the company’s portfolio into next generation solutions and expand the company’s global presence. Before joining Visual Unity, Gabriel was the VP of Sales & Marketing at Cognitive Security, and Director of Alliances at SecureWorks, responsible for partners in Europe, Middle East, and Africa (EMEA). Previously, Gabriel worked at VeriSign & Motorola in a combination of senior marketing & sales roles. Gabriel obtained a degree in Engineering Physics from McMaster University, in Canada and has advanced knowledge in Online Video Solutions, Cloud Computing, Security as a Service (SaaS), Identity & Access Management (IAM), and Managed Security Services (MSS).

[37] “The Linear Schedule works because it takes choice away from people. They might be tired after a busy day, and they don’t want to think too hard about what they view. VoD takes a lot of thought processing”, (Complete quote) “Social media on TV? ‘We are still learning’”, by Chris Forrester, IBC Daily, 9th Sep. 2012, http://www.ibc.org/page.cfm/Action=Library/libID=3/listID=4/libEntryID=609

Synopsis

Corporate leaders face complex challenges in balancing security spending against evolving Internet risks. This has resulted in advanced levels of protection needed to facilitate future strategic objectives. Expert Security addresses the need to implement a more robust and cost-effective level of expertise, and help bridge the gap to culturally adverse corporate solutions such as Managed Security Services (MSS). As companies expand, their need for additional layers of protection is paramount to ensure asset protection. Network Behavior Analysis (NBA) offers a new building block to Expert Security. NBA offers a viable solution to modern sophisticated cyber-attacks. This presentation outlines our corporate overview and market positioning for Network Behaviour Analysis and their products and services.

Synopsis

As mobile data is expected to grow 16 fold over the next four years*, mobile providers are facing new challenges in balancing subscriber ease-of-use and cyber-protection. The explosion in cellular usage and mobile commerce will require advanced levels of protection for mobile users, as hackers continue to find new vulnerabilities. A dual strategy including end-point and infrastructure security will provide robust and cost-effective levels of protection. It will expand provider revenue streams to enhanced services, and increase their ARPU through value-added security. Network Behavior Analysis is a viable building block to infrastructure security, and helps protects a collective subscriber base against sophisticated mobile cyber-attacks.

Synopsis

Bank managers face complex challenges in balancing security spending against evolving internet commerce risks. Criminals have managed to change the battlefield in the war on cyber-crime under the noses of the enterprise community. Highly intelligent exploit kits and trojans bypass layers of security with ease. To prepare for these new adversaries, new and advanced levels of protection are needed to facilitate current and future security objectives. Expert Security addresses the need to implement a more robust and cost effective level of expertise, and bridge the gap to Managed Security Services which are based on a cloud-based model. It’s no longer about adding never-ending layers of protection that fits within a security budget – it’s ensuring that the layers that exist are clever enough to mitigate against modern attacks. This is paramount in ensure asset protection. Network Behavior Analysis is a new building block in Expert Security, and offers a viable solution for state-of-the-art cyber-attacks. This presentation outlines some of these threats and how companies are protecting their clients from modern and sophisticated attacks.

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